Vistara operating last flights as merger with Air India takes off on Tuesday

Full-service airline Vistara will operate its last flights today as it merges with the Air India Group on Tuesday.

National carrier Air India has announced that flights operated by Vistara will start using the flight code ‘AI2’ after the merger of the two airlines.

Following the merger, Singapore Airlines will hold a 25.1 percent stake in Tata Group-owned Air India. Vistara was set up in 2015 as a joint venture (JV) with Singapore Airlines owning a 49 percent stake.

Despite the integration on November 12, the Vistara experience will “remain the same,” said the Tata Group-owned airline. The merger involves Vistara, a joint venture between Tata Group and Singapore Airlines, and Air India.

Currently, Air India uses the airline code ‘AI,’ while Vistara uses ‘UK.’ According to the company, both airlines have been working for over a year to ensure that the merger of the legal and regulated entities is seamless for both customers and staff.

“Though the legal entities and Air Operator Certificates will become one on 12 November, the Vistara experience will remain. Vistara aircraft, crew, and service will continue to operate as before, but with AI2XXX flight numbers bookable via airindia.com,” said an Air India spokesperson in a statement.

In parallel, Air India’s narrow-body fleet will continue to be upgraded with new aircraft being delivered, legacy aircraft being refitted with entirely new interiors, and Vistara’s catering now also extended to Air India.

“We look forward to drawing upon the proud legacies and best practices of both airlines as we form a new airline group of which India can be proud,” the spokesperson added.

In July this year, Air India said it had completed harmonizing operating procedures across key functions for the four Tata Group airlines as a crucial step towards the merger. Vistara, a joint venture between Tata Group (51 percent) and Singapore Airlines (49 percent), is being merged into Air India to create a single full-service carrier.

Singapore Airlines has stated that it will invest Rs 3,194.5 crore in Air India following the anticipated merger of Vistara with the Tata Group-owned airline.

Vistara was set up in 2015 as a joint venture, with Singapore Airlines holding a 49 percent stake in the Indian carrier and the Tata Group owning a majority 51 percent share. Singapore Airlines will own a 25.1 percent stake in Air India.

At the same time, Air India’s subsidiaries, AIX Connect (formerly AirAsia) and Air India Express, have merged to form a single low-cost airline.